Vice Media Faces Bankruptcy as Profitability Falters: Is it the End of the Road for the Media Giant?

By Tony Nesbit 5/3/2023

Digital media company Vice Media is reportedly preparing to file for bankruptcy if it cannot find a buyer in the coming weeks.

The news comes less than two weeks after BuzzFeed News (also closed down amidst a backdrop) of numerous media layoffs in 2023.

Founded in 1994 as an independent punk magazine in Montreal, Vice expanded to become a media empire that included multiple websites, its TV channel, a record label, shows on HBO, an ad agency, and even a production company. The company attracted big investors in media, including Rupert Murdoch's 21st Century Fox, which invested $70 million in 2013 and saw Vice's valuation reach $1.4 billion.

By 2015, Disney [invested] $400 million in Vice, with PE firm TPG investing $450 million two years later. This deal saw the company reach its peak valuation of $5.7 billion. However, the company struggled to profit and reportedly missed its $800 million revenue target in 2017 by more than $100 million.

Disney subsequently wrote down $157 million of its initial $400 million investment in Vice in 2018.

Under newly-appointed CEO Nancy Dubuc, Vice continued to try to manage costs through a series of layoffs, restructurings, and debt fundraising. But, the company wasn't growing fast enough to pay out its lenders.

Vice has been trying to sell itself for over a year. It has been unsuccessful in finding a buyer. More than five companies expressed interest in buying the digital media outlet. The chances of Vice being acquired by another company are slim.

If Vice files for bankruptcy, the company's largest debtholder, Fortress Investment Group, may end up controlling it. In that case, Vice would continue operating normally and run an auction to sell the company over 45 days, with Fortress [in position] as the most likely potential buyer.

The future of Vice after filing for bankruptcy is uncertain, and the company's board and stakeholders continue to [be focused] on finding the best path for the company.